Australian junior Wolf Minerals has acquired the Hemerdon tungsten-tin deposit in Devon, UK and plans to re-activate the project. Wolf has been negotiating the acquisition since June, during which time trading in its shares on the Australian Stock Exchange have been voluntarily suspended pending an announcement. Trading resumed today, with Wolf shares closing at A$2.53, up from $1.33 at the time of the suspension in June and giving the company a market capitalisation of A$59 million.
Wolf plans a large scale open pit operation with an anticipated life of 15 – 19 years, which could create 500 new jobs. Mining is expected to commence within three years.
Planning permission to mine at Hemerdon had been obtained by previous owners Hemerdon Mining and Smelting and Amax Exploration in 1985/86, but the project was halted as tin prices fell sharply as the International Tin Council collapsed. Mineable reserves were estimated at the time at 40 million tonnes grading 0.183% tungsten trioxide and 0.029% tin.
